Beat the deposit cap with this one, simple solution
09 January 2019 4369 Views
It’s 2019, and we may all be wishing each other a Happy New Year, but for UK landlords, the outlook might not be so rosy. The introduction of the Tenant Fees Bill is just around the corner, and the Government’s decision to cap tenancy deposits at just five weeks has left many anxious about how to protect themselves from unpaid rent and outstanding damages.
Ironically, tenants may lose out too. As Richard Lambert, Chief Executive Officer of the National Landlords Association, argues: “A six-week cap is the lowest landlords find acceptable. Does the Government really not realise that if landlords don’t think the deposit covers the risk of damage or unpaid rent, they will be even more cautious about who they let to? All this will do is make it harder for tenants with poor credit ratings or who want to have a pet to find a suitable home.”
But it’s not all doom and gloom – a solution is at hand. One that keeps upfront costs for tenants to a minimum, while offering landlords more than double the protection a traditional five-week deposit can provide, and rewarding agents for introductions. That solution is flatfair – the home of deposit-free renting.
As Adam Ali, flatfair Partnership Manager, explains, “By choosing to rent their property with flatfair, landlords can benefit from up to 12 weeks protection against damages and rent arrears, with free debt recovery for further claims. They can also enjoy faster payouts, and let their properties quicker, which means fewer void periods.”
Tenants can bid farewell to hefty deposit fees too. Instead, they pay a small one-off membership fee of just one week’s rent, plus VAT, to flatfair to secure their membership and landlords are covered instantly. Tenants then settle any claims when they leave through an easy-to-use online portal. Both tenants and landlords have access to an Independent Dispute Resolution service should they struggle to reach an agreement, and tenants are rewarded for treating properties with care, with a discount on their next tenancy.
“The deposit cap is causing a lot of concern to landlords, while it’s not making tenants lives that much easier,” says Franz Doerr, flatfair CEO. “By choosing to rent deposit-free instead, both parties get a much better deal and our innovative technology makes the whole process quick and straightforward.”
The proof is in the pudding. Agents are seeing their deposit-free properties being snapped up 25% faster than their counterparts, while an all-new instant reference check system means some tenants can actually move in on the same day as their viewing.
And just like that, as if by magic, the deposit cap’s a distant memory. Simple, fair and affordable, deposit-free renting really is the future for landlords and tenants alike. Who knows... with your help, 2019 might just be a Happy New Year after all.